The Antitrust Authority has confirmed the report in "Globes" last week: the Authority announced today that it had decided to indict Shufersal Ltd. (TASE:SAE;Pink Sheets:SSLTF) (formerly Super-Sol), its CEO Effie Rosenhause, and its VP for commerce and marketing Eli Gidor, in the affair in which the supermarket chain removed products from its shelves. The indictment is subject to a hearing if those charged desire one. The Authority's final decision will be made after the hearing.
The indictment of Rosenhause is liable to lead to his immediate resignation.
The indictment is on the allegation that Shufersal and its senior managers failed to abide by the conditions imposed on them in the merger between Shufersal and Clubmarket, and that they tried to form a cartel with the aim of reducing competition between Shufersal and rival chain Blue Square.
The investigation into the affair began about six months ago, following a "Globes" exposé which found that Shufersal removed from its shelves products that were on special offer at Blue Square stores for the Hanukah holiday. Blue Square's prices for the products in question were lower than those for the same or similar products in Shufersal's bargain offer.
The investigation, carried out by the investigations department of the Antitrust Authority headed by Haim Arbiv, found that, following advertising of the special offer by Blue Square, Rosenhause and Gidor decided to contact suppliers' whose products were being sold in both chain's bargain campaigns to persuade those suppliers to stop the bargain offer at Blue Square.
The investigation found that, when they failed in this, and the suppliers did not take steps to stop the sale of their products in Blue Square's sale, Rosenhause and Gidor decided that Shufersal would stop buying certain products from those suppliers. Among other products, Shufersal stopped buying Red Mug coffee and Neviot mineral water.
Shufersal bought the failed Clubmarket chain in 2005. The acquisition was approved by the Antitrust Authority on certain conditions designed to ensure competition.
Published by Globes [online], Israel business news - www.globes.co.il - on June 1, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009